Legendary investors Warren Buffett and Charlie Munger don’t fully believe in artificial intelligence.
AI has become a major buzzword on Q1 earnings calls and is the catalyst for the tech rally to start in 2023, but Buffett, 92, and Munger, 99, say AI is what some say. It may not be as revolutionary as it seems.
“I’m personally skeptical of some of the hype about artificial intelligence,” Munger said at the Berkshire Hathaway (BRK-A, BRK-B) annual meeting. And I think you are.”
AI has been at the heart of Wall Street since OpenAI released the latest version of ChatGPT in late November. Since then, tech companies have shown interest in AI, with ChatGPT becoming the fastest-growing app on record, and stocks like Microsoft (MSFT), Nvidia (NVDA), and C3.ai. is increasing more and more. (AI) soared.
AI is a focus of earnings reports as tech companies wage an AI war against each other. Alphabet said its AI efforts cost him $3.3 billion in the first quarter, but Microsoft believes it will help it gain market share amid a “generational shift in search.”
Microsoft has emerged as a leader in this space, investing $10 billion in OpenAI. Also, the company’s founder, Bill Gates, recently introduced some of his AI technology at the company to Buffett.
“We’ve done an amazing job, but we can’t tell jokes,” Buffett said. “Bill told me that in advance and prepared it for me, but it’s not there.”
AI holds great promise, but the outlook for the technology is not entirely positive. A group of prominent tech founders have written a letter warning of the dangers of AI. Just last week, IBM CEO Arvind Krishna said AI could replace his nearly 8,000 jobs at the company.
Buffett likened the destructive nature of AI to the atomic bomb the United States used to finally end World War II. Buffett said war tactics were necessary, but questioned, “Will it be good for the world’s next 200 years?”
“I get a little worried when something makes all sorts of things possible,” Buffett said.
Just as Munger and Buffett are unimpressed by other trendy equity strategies like cryptocurrencies, Munger calls it a “venereal disease,” and Berkshire-Hathway is still fully committed to AI. may not be working on it.
“With AI, we can change everything in the world except the way humans think and act,” Buffet said. “And that’s a big step.”
Josh is a reporter at Yahoo Finance.
Click here for the latest stock market news and in-depth analysis, including stock-moving events
Read the latest financial and business news from Yahoo Finance
